Category Archives: NJPACE

New Jersey is about to experience a surge of new clean energy projects, unleashing a considerable amount of additional private financing for energy efficiency and renewables.

Amendments to NJ’s existing PACE law are being passed in the NJ Legislature this month. Governor Christie has the opportunity to sign this legislation before he leaves office. Given that the new bill includes amendments based on his 2015 conditional veto, Governor Christie could (and we think, should) sign Commercial-only PACE legislation as part of his economic legacy.

PACE — Property Assessed Clean Energy — is a new source of financing for commercial projects. More than a dozen states have PACE programs which have collectively financed almost half a billion dollars worth of projects across the US and created almost 7,500 jobs. And this is just the tip of the iceberg of new construction and retrofit projects that are eligible for this new form of financing

The most appealing features of Commercial PACE for energy efficiency, renewable energy and resiliency financing are that it:

Covers 100% up front financing, including project development costs, and can be off-balance sheet

Allows terms of up to 30 years, allowing projects to be cash-flow positive from the start

Remains with the building upon sale

Allows payments to be passed along to tenants, resolving the split incentive issue

Increases the value and competitiveness of the building

Property owners can receive subsidies and incentives from the NJ Clean Energy Program, and use PACE financing to finance 100% of the remaining hard and soft costs.

Other potential sources of energy-improvement financing include state programs such as the proposed Public Bank, a possible Green Bank, and the New Jersey Resilience Bank (which has already committed all of its available funds). But each of these is likely to take longer to implement than PACE, requiring additional legislative approvals.

The distinguishing feature of PACE is that it does not involve any public funds, is wholly decentralized through the municipalities and the private sector, and is not managed by the state. It can get off the ground immediately, and make a substantial impact on creating jobs and reducing emissions.

Ramping up both public and private funding

Our preliminary estimates suggest that the potential for clean energy improvements of commercial properties in New Jersey may be more than $75 billion, including renewables and efficiency improvements, even a fraction of which is capable of creating an enormous boost in jobs and economic development.

What this means is that PACE could rapidly exceed the current level of public clean energy financing in the state, potentially more than doubling the extent of market transformation. Commercial PACE can provide 100%, non-recourse, and off-balance-sheet financing for a wide range of projects; or simply bridge the gap between what the Clean Energy Program provides and the total cost of the project. In addition, there are other innovative financing structures that have been devised specifically to take the place of PACE where PACE is not yet available. So the private market is going to drive the transition further and faster than ever.

In the wake of Governor Christie’s conditional veto of A2579/S1510, New Jersey PACE is initiating a coalition of key players to:

(a) resolve any issues standing in the way of a new, comprehensive, and workable bill — acceptable to all constituencies, insofar as possible — that initiates the development of a robust and secure PACE industry, and

(b) develop an industry alliance that helps expand the program to all sectors and all corners of the state.

Our main focus at this point is building out New Jersey PACE, an open-market platform for commercial PACE deals anywhere in the state. The critical amending legislation (A2579/S1510) passed at the end of June; we are now waiting for the front office review and the Governor’s signature. In the meantime we reviewing and revising parts of our web presence to make them more accessible and self-evident. We anticipate a significant backlog of projects once the law is signed, and we want to make the process as easy as possible for everyone to understand and implement.

At the same time, CRCS as an engine of change is continuing to evolve new projects – some our own, built on or around the PACE model; and some from others, such as Dr. Delton Chen’s Global4C project, which is attracting worldwide attention. We’re gradually getting into various models of “fiscal sponsorship” for organizations and projects that we see as compatible with or related to our mission. In most cases — such as our Regenerative Cohousing initiative — our goal is to bring these projects in-house, under our own umbrella; but in a couple of instances we may support fledgling organizations until they get their own IRS exemption.

Finally, we’re exploring further opportunities for individuals to profit from the transition to renewable energy — from the bulk purchase of green energy, the installation of solar with no upfront cost to the property owner, to the use of PACE in underserved communities and distressed neighborhoods. Stay tuned.

After 3 years of working to bring PACE to New Jersey, and close to a real launch, we have scheduledThe New Jersey PACE Summit – the first of its kind event for PACE in NJ. We are seeking Founding Sponsorships and Event Sponsorships, a schedule of which you can view at NJPACE-Sponsorship.

From the Sponsors’ perspectives, they’re passionate about being able to award dollars for something they believe in and want to support, while gaining recognition and acknowledgement far beyond what they could get through paid advertising.

Our goal in recognizing our Sponsors is therefore to convey something significant about them, and about their support for us.

Our first Founding Sponsor is an out-of-state company — MSL Group — that’s been doing PACE projects in other states. It’s ironic, perhaps, that no local company or firm would jump into the water as a Founding Sponsor. But it’s an indication of what energy services firms who are operating in states where PACE is thriving, know, that NJ firms don’t yet know: that PACE is actually as good as it sounds, for every stakeholder.

The theme of this year’s New Jersey PACE Summit is “PACE: what’s possible for New Jersey?” The subtitle gives part of the answer: “Resiliency • Clean Energy • Jobs”— these are the major elements of the story, that will be explored at the conference. And there’s more to it as well — PACE can provide regenerative community benefits, support new technologies, and foster new approaches to the global challenges of our times.

PACE, which stands for “Property Assessed Clean Energy,” is redefined in NJ’s new amending legislation to include “the purchase, lease, or installation, or any combination thereof, of renewable energy systems or the energy produced by such systems, energy efficiency improvements, water conservation projects, flood resistant construction projects, hurricane resistant construction projects, storm shelter projects, or safe room projects, undertaken by property owners on properties within a municipality.”

CRCS and New Jersey PACE Executive Director Jonathan Cloud will be one of the speakers at the NJ Appleseed event on “Embedding Sustainable Development & Land Use into Public Policy” on March 23 at Seton Hall Law School in Newark, NJ. The day-long event, featuring Jersey City Mayor Steve Fulop along with a line-up of other prominent speakers, will address a variety of timely issues related to sustainable development in New Jersey:

Development in New Jersey is a hot-button issue, with strong feelings on both sides. Some believe it is out of control, and cite strip malls springing up almost overnight, and mass numbers of townhomes covering the once-pristine suburban hillsides. Others argue that development brings jobs and other tangible benefits, and is key to the State’s economic future. Like it or not, development in New Jersey is here to stay. But can development be a force for good? Can we lessen the environmental impact, or better yet, reinforce overall sustainability and resiliency in New Jersey communities, create more affordable homes for our citizens, and stabilize neighborhoods? At this New Jersey Appleseed Public Policy Forum we will explore efficient and ethical land use policies, discuss private sector concerns and ways to address opposition, focus on how implementing ‘green’ can impact the bottom line, look at the ways that affordable housing can help create sustainable, safe, and strong communities, and examine strategies to reduce risk from new policies, among other important issues.

The latest version of A2579 — amending legislation to the PACE statute approved in 2012, which has proved unworkable — has been passed out of the Assembly Appropriations Committee, and is now headed to the floor for a vote. An identical version is being shepherded through the NJ Senate by its passionate sponsor, Senator Bob Smith (D-Middlesex), with the full concurrence of its Republican Co-Sponsor, Senator Kip Bateman (R-Somerville).

Here is a portion of the “Statement” accompanying the release of the bill:

Asking for money is one of the more challenging things that every charity has to do. The first question we need to answer, however, is “Why are we asking?” If we don’t have a clear and compelling answer, we’re handicapping ourselves from the start.

So here’s why.

It’s to give people the opportunity to contribute to the world they believe in.

It’s to give us the ability to keep working on creating a world that works, by providing “regenerative community solutions,” i.e., practical ways of restoring and building communities that last and become self-reinforcing and self-sustaining.

Ultimately, it’s to empower the world of generosity, the you-and-me world, rather than the you-or-me world.

In The Soul of Money, Lynne Twist, who has raised more than $150 million in individual contributions, tells the story of her own first monetary contribution:Continue reading →

The challenges we face in New Jersey as a result of climate change are significant, and so therefore are the opportunities. The experience of Superstorm Sandy showed us just how ill-prepared we are for the more frequent recurrence of extreme weather; and how important it is that we set an example for taking action to mitigate our own greenhouse gas emissions, as other states are doing around us. And there’s also no doubt about the urgency of it — as you can see from this remarkable video:Continue reading →

Featured: Ecovillage NJ and Regenerative Cohousing Solutions

For a while now we’ve been giving serious consideration to where and how we might want to live during this next few years of our lives. Like many others in our age group, we’re officially “empty-nesters,” and are looking to live “more lightly” on the land. We’d also like to be part of a genuine community, where we have deeper relationships with our neighbors, and can work together to bring about more rapid social change.

About CRCS

The Center for Regenerative Community Solutions (CRCS) is a 501c3 NJ nonprofit organization committed to:
• Providing community engagement in planning for sustainability
• Assisting local governments to adapt to climate change
• Helping small businesses and other non-profits to reduce climate change impacts in low and moderate-income communities, including communities impacted by Hurricane Sandy